Outlook for 2010
In 2010, Vestas expects to achieve an EBIT margin of 10-11 per cent and revenue of EUR 7bn against previously expected 10-12 per cent and EUR 7-8bn, respectively. The narrowing is due to the fact that the year's expected order intake of firm and unconditional orders of 8,000-9,000 MW is anticipated to materialise
so late in the year that it is considered unlikely that revenue will reach EUR 8bn.
Adjusted for input prices, in general Vestas expects that prices and conditions remain unchanged in 2010 relative to 2009. The slowdown in profitability improvement is due to Vestas having excess capacity and the far majority of revenue, and especially profit, being expected in the second half of the year. Net working capital is expected to fluctuate heavily in 2010 and is expected to amount to 15 per cent of annual revenue at the end of the year.
Investments in property, plant and equipment and intangible assets are expected to be EUR 250m and EUR 350m, respectively.
The completion in 2010 of recent years' large investments in the USA and China will lead to lower investments in property, plant and equipment than in 2009.
Triple15
Vestas strategy is called No. 1 in Modern Energy. Triple15 puts two targets and a deadline to the strategy turning our vision – Wind, Oil and Gas – into reality. With an EBIT margin of 15 per cent on a revenue of EUR 15bn in no later than 2015 wind power will be an integrate part of the energy mix all over the world. Vestas will improve its profitability from leverage, levelling out activity through out the year, regionalising the manufacturing footprint, reaching 6 Sigma and daily productivity gains. To this should be added new turbines and a still stronger service offering to our customers. The Vestas will power will take us to Triple15 in severe competition with existing and new competitors.
